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Home My WebLink About2016-09-13; City Council; ; Approve a Resolution adopting the New Fee Structure for Fire Prevention ServicesCA Review jZ ~ CITY COUNCIL Meeting Date: To: From: Staff Contact: Subject: September 13, 2016 Mayor and City Council ../ Kevin Crawford, City Manage~ v Randy Metz, Fire Marshal Randy.Metz@carlsbadca .. gov or 760-602-4661 Approve a Resolution Adopting the New Fee Structure for Fire Prevention Services Recommended Action Hold a public hearing and approve a resolution adopting a new Fire Prevention Fee Schedule, setting the collection of development services and special events and activities fees at true cost, and establishing fire code permits and maintenance inspections as a service to the public and not a fee for service. Executive Summary Fire Prevention currently collects fees for development related services, special events and activities, and fire code permit issuance. NBS was contracted to comprehensively analyze existing costs of providing fire prevention services (Exhibits 2 & 3). The analysis compared existing fees to the actual cost of providing the service based on historical data from the city's existing permit system, departmental budget reports, and in-depth interviews to determine actual staff time for performing the task. City Council received the NBS analysis on August 23, 2016. The proposed fee schedule (Attachment A to the Resolution) is based on a time over task analysis and represents the actual "true" cost of providing fire prevention services. The true costs identified in the study are the maximum fees that the city can legally charge for services. The fire department's past practices included performing fire code maintenance inspections as a service to the public at no charge and the study showed that on average, the city is not recovering all eligible costs for service for each fee category identified. The Fire Department recommends true cost recovery for fees associated with development and special events and to provide fire code permit issuance and maintenance inspections as a service to the community at no cost. The narrative Fee Study of Fire Prevention Services (Exhibit 2) provides the full detail of the methodology and approach of the study. The User Fee Study of Fire Prevention Services (Exhibit 3) provides the quantitative analysis outlining the actual cost of service for each fee category. Discussion The expected outcome of this study was to provide transparency of fees for service, an industry standard fee structure, and support City Council's goals. The fees are true cost based on time over task analysis, meaning the customer only pays for the services they need and the services completed. An industry standard fee structure adds no additional fees unique to Carlsbad, with no surprises to the customer. The Fire Department helps reach the goal of a safe community through the Fire Prevention Bureau by ensuring buildings are built and maintained to code, and provide a structure of fees that is not in conflict with broader city goals and objectives. Item #10 September 13, 2016 Page 1 of 41 The Fire Department understands the concern of hold times or delays for developers and their overall impact on the final product. This recommended fee model will result in decreased turnaround times of all projects thus reducing overall project costs, and improving the efficiency of providing Fire Prevention services. The Fire Department recommends a true cost recovery model (one that recovers all costs associated with providing a specific service) for: • Fees Associated with Development-Development includes plan checking and inspections prior to a building being occupied or reoccupied during tenant improvements. A significant portion of these fees are contract service fees for plan check, which are passed through to the customer. Fire Prevention staff used three theoretical building projects to compare costs to the cities of Oceanside, Vista and Encinitas. Carlsbad's cost remain at the bottom using the proposed cost recovery model. This will only apply to fees collected directly by the Fire Department and will not include Engineering or Planning Department fees at this time. • Fees Associated with Special Events/Activities-Special event/activity fees are geared towards those events that occur outside the normal operating hours of the city and for a defined period of time such as tent inspections, street fairs, tennis and golf tournaments, and fireworks. Most of these events require permitting, inspections and standby from fire prevention staff during off hours. The Fire Department recommends a no cost recovery model for: • Fees Associated with the Inspections of Buildings tor the Purposes of Maintenance-Maintenance fees are for operational permits, mandated inspections and non-mandated business inspections. Maintaining the fire code improves employee, public, and first responder's safety and the greater good is benefited through fire code maintenance programs that are aimed at correction rather than collection. Fire Department staff have performed public outreach with the Carlsbad Chamber of Commerce and the San Diego Building Industry Association to receive feedback on the findings of our study and to present our recommended cost recovery model. Both of these organizations have provided positive support for our efforts to address the needs of their membership in a way that creates transparency, is based on industry standards using sound time accounting methodology and meets the goals of all organizations. Schedule for Adoption The following schedule will allow the city to implement the proposed new rates in time for the go-live date of Energov, the new permitting and licensing system and will be implemented along with the development related fee updates approved by City Council with the FY2016-17 budget. September 13, 2016 November 13, 2016 Fiscal Analysis Hold the Public Hearing and adopt new rates Effective date of new rates The proposed fire prevention fee structure is the result of the NBS fee study to ensure incorporation of industry best practices and standards and aligns with categories of similar development processes such as building permits. The new fee structure would go into effect the date the city goes live with the new permitting and licensing software system, Energov, but no sooner than is allowed by Government Code Section 66016. Item #10 September 13, 2016 Page 2 of 41 Next Steps November 13, 2016 Effective date of new rates Environmental Evaluation (CEQA} Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Public Notification A notice of Public Hearing was published in the September 2nd and gth editions of the Coast News. Exhibits 1. Resolution adopting a new Fire Prevention Fee Schedule, setting the collection of development services and special events and activities fees at true cost, and establishing fire code permits and maintenance inspections as a service to the public and not a fee for service. 2. Fee Study of Fire Prevention Services, prepared by NBS, dated June 20, 2016. 3. User Fee Study of Fire Prevention Services, prepared by NBS, dated June 20, 2016. Item #10 September 13, 2016 Page 3 of 41 RESOLUTION NO. 2016-189 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING A NEW FIRE PREVENTION FEE SCHEDULE, SETTING THE COLLECTION OF DEVELOPMENT SERVICES AND SPECIAL EVENTS AND ACTIVITIES FEES AT TRUE COST, AND ESTABLISHING FIRE CODE PERMITS AND MAINTENANCE INSPECTIONS AS A SERVICE TO THE PUBLIC AND NOT A FEE FOR SERVICE. EXHIBIT 1 WHEREAS, fire prevention fees have been comprehensively analyzed by NBS, in a study dated June 20, 2016; and WHEREAS, the City Council set a Public Hearing for this matter on August 23, 2016; and WHEREAS, fire prevention currently collects fees for development related services, special events and activities, and fire code permit issuance. The proposed fee schedule is based on a time over task analysis and represents the actual"true" cost of providing these fire prevention services. The true costs identified in the study are the maximum fees that the city can legally charge based on the time over task analysis; and WHEREAS, the fire department recommends that the City Council set fees at true cost recovery for fees associated with development and special events, and to provide fire code permit issuance and maintenance inspections as a service to the community at no cost; and WHEREAS, the effective date for the new fees is November 13, 2016 or the date the City goes live with the new permitting and licensing software system, Energov, but no sooner than is allowed by Government Code Section 66016. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. City Council hereby adopts the new Fire Prevention Fee Schedule, included as Attachment A to this Resolution, setting the collection of development services and special events and activities fees at true cost, and establishing fire code permits and maintenance inspections as a service to the public and not a fee for service. Item #10 September 13, 2016 Page 4 of 41 EXHIBIT 1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 13th day of September. 2016, by the following vote, to wit: AYES: Wood, Schumacher, Blackburn, Packard. NOES: None. ABSENT: Hall. ~~m-~ LORRAINE WOOD, Mayor Pro Tern Item #10 September 13, 2016 Page 5 of 41 City of Carlsbad Fire Prevention Proposed Fee Schedule NBS · t.ocal Government Solutions Web: www.nbsgov.com Toii·Free:800.676.7516 Fire cos. Page 1 of 3 Item #10 September 13, 2016 Page 6 of 41 City of Carlsbad Fire Prevention Proposed Fee Schedule NBS-Local Government Solutions Web: www.nbsgov.com Toii-Free;800.676. 7516 Fire cos, Page 2 of 3 Item #10 September 13, 2016 Page 7 of 41 City of Carlsbad Fire Prevention Proposed Fee Schedule $ 132 $ 22 Acutal Cost $ 22 f--·l-__:_..::.:....;:..:.::.;:::...,_=.:..;:=.:.::....------------1 s 147 $ 132 NBS· Local Government Solutions Web: www.nbsgov.com Toii·Free:800.676.7516 Fire COS, Page 3 of 3 Item #10 September 13, 2016 Page 8 of 41 Q Nes· helping communities fund tomorrow City of Carlsbad Fee Study of Fire Prevention Services June 20, 2016 OFFICE LOCATIONS: San Francisoo -Regional Office 870 Mar1<et Street Su~e 1223 Soo Francisco, CA 94102 Davis -Regional Office 1260 Lake Boulevard, Suite 202 Davis, CA 95616 Irvine -Regional Office 18012 Cowan Street, Suite 290 Irvine, CA 92614 Temecula-Corporate Headquarters 32605 Temecula Par1<way, Suite 100 Temecula, CA 92592 (P) 800.676.7516 Item #10 September 13, 2016 Page 9 of 41 TABLE OF CONTENTS Executive Summary ................................................................................................................................... 3 Section 1 -Introduction and Fundamentals .......................................................................................... 4 Scope of Study ....................................................................................................................................... 4 Methods of Analysis ............................................................................................................................... 4 Cost of Service Analysis .................................................................................................................... 4 Cost Recovery Evaluation ................................................................................................................. 6 Fee Establishment ............................................................................................................................. 6 Data Sources .......................................................................................................................................... 7 Section 2-Fee Study Results ................................................................................................................. 8 Cost of Service Analysis ....................................................................................................................... 8 Cost Recovery Evaluation ..................................................................................................................... 9 Fee Establishment ................................................................................................................................. 9 Section 4-Conclusion ............................................................................................................................ 11 Attachments Cost of Service Analysis (Fee Tables) Fee Study of Fire Prevention Services -City of Carlsbad Prepared by NBS A TOC Item #10 September 13, 2016 Page 10 of 41 Executive Summary NBS performed a Fee Study (Study) for Fire Prevention services provided by the City of Carlsbad (City). This report presents the Study's findings and recommendations, which intend to defensibly update and establish user and regulatory fees for service for the City of Carlsbad, California. The City's chief purposes in conducting this Study are to: • structure fees according to current best practices in fire prevention service delivery, • ensure that existing and proposed fee amounts are calibrated to the costs of providing each service; and, • offer an opportunity for the City Council to optimize its revenue sources, provided that any increased cost recovery from user fees and regulatory fees would not conflict with broader City goals and objectives. On average, the City is not recovering the total eligible cost of service for each fee category identified. According to the City's revenue reports for Fiscal Year 2014-15, approximately $170,000 were collected in fees for Fire Prevention services. As discussed in Section 2 of this report, the total estimated cost of providing fee related services for the Division is approximately $727,000. The City is currently recovering approximately 23% of the cost of providing services for which a fee could be charged. As discussed further in Section 1 of this report, there are many economic, political, and behavioral reasons city staff or policy makers may or may not recommend or adopt fees at 100% of their costs. For these reasons, City staff made an initial effort to suggest cost recovery policy levels for Council's consideration by providing initial "recommended fee" input for each service area studied. These recommended fee amounts are included as part of the City's staff report to Council. This report from NBS focuses on describing the defensible approach applied to calculating the total cost of service for each fee category included in the Study, as well as the resulting 1 00°/~ cost recovery amount derived for each fee category. Fee Study of Fire Prevention Services -City of Carlsbad Prepared by NBS 3 Item #10 September 13, 2016 Page 11 of 41 Section 1 -Introduction and Fundamentals It is generally accepted in California that cities are granted the authority to impose user fees and regulatory fees for services and activities they provide through provisions of the State Constitution. Under this legal framework, a fee may not exceed the estimated reasonable cost of providing the service or performing the activity. For a fee to qualify as such, it must relate to a service or activity under the control of the individual/entity on which the fee is imposed. For example, the individual/entity requests service of the municipality or his or her actions specifically cause the municipality to perform additional activities. In this manner, the service or the underlying action causing the municipality to perform service is either discretionary and/or is subject to regulation. As a discretionary service or regulatory activity, the user fees and regulatory fees considered in this study fall outside requirements that must otherwise be followed by the City to impose taxes, special taxes, or fees imposed as incidences of property ownership. Scope of Study The following categories of fees were examined in this study:· I. Fire Extinguishing and Alarm Systems: The City permits new or retrofitted sprinkler and alarm systems, as well as other types of specialized extinguishing systems. II. Development Applications, Plan Review, and Inspection: The City's Fire Prevention Division reviews and provides comments on many types of applications submitted to the Planning and Engineering Division. The Fire Preventiof) Division also supports the Building Division by reviewing plans and inspecting most types of new non-residential projects, residential vegetation fuel modification requests, and any hazardous materials storage, high piled storage, or above and underground tank permits. Ill. Annual Inspection and Fire Code Permits: The City is required to perform routine, State-mandated inspections on many types of building within City limits such as residential and commercial care facilities, hotels and motels, apartments, etc. The City also charges both annual and one-time fire prevention permit fees for activities regulated or permitted per the California Fire Code and/or Carlsbad Municipal Code. The fees examined in this Study specifically excluded any type of utility rates, development impact fees, and special assessments, all of which fall under distinct analytical and procedural requirements different from the body of user/regulatory fees analyzed in this effort. Additionally, this Study excluded·facility and equipment rental rates, as well as most of the fines and penalties that may be imposed by the City for violations to its requirements or code. (The City is not limited to the costs of service when charging for entrance to or use of government property, or when imposing fines and penalties.) Methods of Analysis There were three primary phases of analysis applied throughout this Cost of Services (Fee) Study: Cost of Service Analysis, Cost Recovery Evaluation, and Fee Establishment Cost of Service Analysis A cost of service analysis is a quantitative effort that compiles the full cost of providing governmental services and activities. There are two primary types of costs considered: direct and indirect costs. Direct Fee Study of Fire Prevention Services -City of Carlsbad Prepared by NBS 4 Item #10 September 13, 2016 Page 12 of 41 costs are those that specifically relate to the activity in question, inCluding the real-time provision of the service. Indirect costs are those that support the provision of services but cannot be directly or easily assigned to the activity in question. An example of a direct cost is the salary and benefit expense associated with an individual performing a service. In the same example, an indirect cost would include the expenses incurred to provide an office and equipment for that individual to perform his or her duties, including (but not exclusive to) the provision of the service in question. Components of the full cost of service include direct labor costs, indirect labor costs, specific direct non- labor costs where applicable, allocated non-labor costs, and allocated organization-wide overhead. Definitions of these cost components are as follows: • Labor costs -These are the salary/wage and benefits expenses for City personnel specifically involved in the provision of services and activities to the public. • Indirect labor costs -These are the salary/wage and benefits expenses for City personnel supporting the provision of services and activities. This can include line supervision and departmental management, administrative support within a department, and staff involved in technical activities related to the direct services provided to the public. • Specific direct non-labor costs -These are discrete expenses incurred by the City due to a specific service or activity performed, such as contractor costs, third-party charges, and very specific materials used in the service or activity. (In most fee types, this component is not used, as it is very difficult to directly assign most non-labor costs at the activity level.) • Allocated indirect non-labor costs -These are expenses other than labor for the departments involved in the provision of services. In most cases, these costs are allocated across all services provided by a department, rather than directly assigned to fee categories. • Allocated indirect organization-wide overhead -These are expenses, both labor and non-labor, related to the City's agency-wide support services. Support services commonly include general administrative services such as: City Manager, City Clerk, City Attorney, Human Resources, Finance, etc. The amount of costs attributable to each department or division included in this study were developed though a separate Cost Allocation Plan provided by the City's Finance Department. All costs in this Study are expressed using annual (or annualized) figures, representing a twelve-month cycle of expenses incurred by the City in the provision of all services and activities agency-wide. Nearly all of the fees under review in this study require specific actions on the part of City staff to provide the service or conduct the activity. Because labor is an underlying factor in these activities, the full cost of service was most appropriately expressed as a fully burdened cost per available labor hour. This labor rate -expressed as an individual composite rate for the Fire Prevention Division, and serves as the basis for further quantifying the average full cost of providing individual services and activities. The fully burdened labor rate is used at the individual fee level to estimate an average total cost of providing each fee related service or activity. This step required the development of staff time estimates for the services and activities listed in the proposed fee structure. It should be noted that the development of these time estimates was not a one-step process: estimates received were carefully reviewed by both consultant and the Fire Marshal to assess the reasonableness of such estimates. The average cost of service represents the average cost at the individual fee level. The City does not currently have the systems in place to impose fees for every service or activity based on the actual amount ~-------~---------~-------~~---------~----··----·-·--··------------------ Fee Study of Fire Prevention Services -City of Carlsbad 5 Prepared by NBS Item #10 September 13, 2016 Page 13 of 41 of time it takes to serve each individual. Moreover, such an approach is almost universally infeasible without significant-lf not unreasonable-investments in costly technology. Much of the City's Fire Prevention fee schedule is composed of flat fees, which by definition, are linked to an average cost of service; thus. yse of this average cost method was the predominant approach in proceeding toward a schedule of revised fees. Flat fee structures based on average costs of service are widely applied among other California municipalities, and it is a generally accepted approach. Cost Recovery Evaluation Current levels of cost recovery from existing fee revenues were stated simply by comparing the existing fee for each service or activity -if a fee was charged -to the average total cost of service quantified through this analysis. Cost recovery was expressed as a percentage of the total cost. A cost recovery rate of 0% means no costs are recovered from fee revenues. A rate of 100% means that the full cost of service is recovered from the fee. A rate between 0% and 100% indicated partial recovery of the full cost of service through fees. A rate greater than 100% means that the fee exceeded the full cost of service. User fees and regulatory fees examined in this Study should not exceed the full cost of service. In other words, the cost recovery rate achieved by a fee should not be greater than 100%. In most cases, imposing a fee above this threshold could require the consensus of the voters. Fee Establishment This Study also included a range of fee structure design and fee structure implementation considerations, as described below: • Addition to and deletion of fee categories -The Study process provided the opportunity to propose additions and deletions to the fee schedule, as well as rename, reorganize, and clarify fees. Many such revisions were performed to better conform fees to current best practices, as well as improve the calculation of fees owed by an individual, the application of said fees, and the collection of revenues. In other words, as staff is more knowledgeable and comfortable working with the fee schedule, the accuracy achieved in both imposing fees on users and collecting revenues for the City is greater. Beyond this, some additions to the fee schedule were simply identification of existing services or activities performed by City staff for which no fee was imposed. • Revision to the structure of fees -In many cases, the current structure of fees was sustained; the level of the fee was simply recalibrated to match the costs of service and targeted cost recovery level. In several cases, however, the manner in which a fee is imposed on a user was changed. In the majority of cases in which this was done, the primary objective was to simplify and1or clarify the fee structure, or increase the likelihood that the full cost of service would be recovered. • Documentation of tools to calculate special cost recovery -An element included in the City's fee schedule development is a combined fully burdened hourly rate for the Fire Prevention Division. Documenting these rates in the fee schedule provides an opportunity for the City Council to approve rates that should be used whenever the City computes a special form of cost recovery under a "time and materialsR approach. It also provides clear publication of those rates, so ultimate fee payers of any uniquely determihed fee can reference the amounts. Publication of these rates in the Master Fee Schedule should be accompanied by language providing that special forms of cost recovery for activities and services not contemplated by the adopted master fee schedule can be computed at the discretion of the City Manager or Manager's designee, following that the rates adopted by the City Council are as shown in the Master Fee Schedule. Fee Study of Fire Prevention Services -City of Carlsbad Prepared by NBS 6 Item #10 September 13, 2016 Page 14 of 41 Data Sources The following City-published data sources were used to support the cost of service analysis and fee establishment phases of this study: • The City of Carlsbad's Adopted Budget for Fiscal Year Fiscal Year 2015-16. • A complete listing of Fire Prevention Division personnel, salary/wage rates, regular hours, paid benefits, and paid leave amounts-provided by the Finance Department. • Various correspondences with the City staff supporting the adopted budgets and current fees, including budget notes and expenditure detail not shown in the published document. • Prevailing fee schedules provided by the Fire Department. The City's adopted budget is the most significant source of information affecting cost of service results. It should be noted that consultants did not conduct separate efforts to audit or validate the City's financial management and budget practices, nor was cost information adjusted to reflect different levels of service or any specific, targeted performance benchmarks. This study has accepted the City's budget as a legislatively adopted directive describing the most appropriate and reasonable level of City spending. Consultants accept the City Council's deliberative process and ultimate acceptance of the budget plan and further assert that through that legislative process, the City has yielded a reasonable expenditure plan, valid for use in setting cost-based fees, Beyond data published by the City, original data sets were also developed to support the work of this study: primarily, estimated staff time at various levels of detail. To develop these data sets, consultants prepared questionnaires and conducted meetings and interviews with individual City staff relevant to the fees and service areas studied. In the Cost of Service Analysis phase of the analysis, departmental staff provided estimates of average time spent providing a service or activity corresponding with an existing or new fee. Consultants and departmental management reviewed and questioned responses to ensure the best possible set of estimates. Fee Study of Fire Prevention Services -City of Carlsbad Prepared by NBS 7 Item #10 September 13, 2016 Page 15 of 41 Section 2-Fee Study Results The scope of this user and regulatory fee analysis focused solely on Fire Prevention fees for service. Cost of Service Analysis Based on the City's current organizational and cost accounting structure, NBS studied the costs of the Fire Prevention Division separate from the Fire Department's emergency response operations. The following table categorizes the Division's total costs across both fee related and non-fee related services, as well as the re.sulting fully-burdened hourly rate applicable toward establishing the "full" or "maximum" charge for fee related services. General Publ•cl Weed I Publoc lArson Invest II Oorect Plan I Cost Elconent 1 1 At> Ed lncodenl Chcc:l<l Focld Total no atemerH ucahon Respouso SerVfcos Labor Recurring Non-Labor Citywide O>ethead o;.,;sion Administration $ 77,396 $ 1.421 13,686 50.666 37,386 s 686 6,611 24,474 27.363 s 502 4,839 17.913 27,363 $ 502 4,839 17.913 334.725 $ 6,145 59,191 219.123 504,233 -9,256 89,166 330,088 ~ ·s~ _ '.143,_169; ·f~jj9,157l t:. 50.~1Ji•l~'I:OII::i5Q.~6JLS' §J9,184l (SJO. '932,t43' Eligible Cost RecO\a)' !Tom Fees for Serlice 75% 0% 0% 0% 100% 78% Oi.,;sion Totals: Amount Targeted for Reco-.ery in Billings/Fees $ 107,377 $ -$ -$ -$ 619,184 $ 726,561 Amount Requiring Another Funding Source $ 35,792 $ 69,157 $ 50,616 $ 50,616 $ -$ 206,182 ~•1llil!ililm.ll . e 'ml _'~ D -~ ,-~ ... ;EJ· --=:. ~-~:~~----.. ® ~ - Reference: Direct Hours Only 5,517 The "Amount Targeted for Consideration in Billings/Fees'' row of this table identifies all service areas that NBS supports as justifiable components of the fully-burdened hourly rate applied toward establishing user/regulatory fee recovery limits. All subsequent cost of service calculations at the individual fee level assume a fully-burdened hourly rate of $132, with potential to recovery approximately $727,000 (78%) in costs from fees for service. The "Amount Requiring Another Funding Source" row of the table identifies service areas that NBS recommends as best funded via alternate revenue sources than fees for service. All subsequent cost of service calculations at the individual fee level exclude these amounts, re sulting in approximately $206,0,00 (22%) requiring funding from non-user or regulatory fee revenues. The cost category nomenclature shown in the columns of table above was adapted and summarized from Division staff interviews. To assist the reader in understanding the underlying costs and assumptions used to calculate the fully-burdened hourly rate, summaries of the cost categories are provided as follows: • General Public Information -Staff time devoted to responding to phone calls and public inquiries not specifically associated with an active permit Typically, some portion of costs for provision of general public information and assistance are not linked for recovery from fees for fire prevention services. Fire Prevention staff estimates approximately 75% of their time spent on this activity is associated with current and near term application submittal activities, while the remaining costs should be not be considered in the calculation of fees for services. • Weed Abatement-Groups of tasks and activities devoted to the responsibilities of enforcing weed abatement activities. As these tasks are typically considered activities related to violation of State Fee Study of Fire Prevention Services-City of Carlsbad Prepared by NBS · 8 Item #10 September 13, 2016 Page 16 of 41 laws and municipal codes specific to weed abatement, the funding source is typically found in penalty revenues, or is subsidized by the City's general fu11d. • Public Education-the Fire Prevention Division provides various public outreach and public safety education services. These activities are not related to activities for which a fee is charged, and are typically subsidized by a city's general fund. • Arson Investigation and Incident Response: Fire Prevention staff are occasionally called upon to provide investigation and response activtties for the City. These activities are typically billed on a time and materials basis or are subsidized by the general fund. • Direct Plan Check and Field Services: Activities associated with an active fire prevention plan check, inspection, or permit application. 100% of these costs are recoverable in the Fire Prevention Divison's user and regulatory fees for service. Significant analytical and policy decisions often revolve around inclusion of categorized activity costs in the fully-burdened hourly rate. The decision whether to include or exclude some or all of a particular cost category in user/regulatory fees for service is guided by basic fee setting parameters offered by the California State Constitution and Statutes, which requires that any new fee levied or existing fee Increased should not exceed the estimated amount required to provide the service for which the charge is levied. Cost Recovery Evaluation Attachment A presents detailed cost recovery tables for each fee recoverable service. The "Total Cost of Service per Activity Column" establishes the legal maximum at which a fee could be charged for the corresponding service identified in the "Fee Description'' list. NBS worked extensively with City staff to gather estimates of time required to perform each service identified in the Attachment. Time estimates were independently evaluated on separate occasions by staff members and also analyzed by NBS to determine whether the time estimates provided seemed reasonable when compared against the numerous fee studies NBS staff have performed. When the Cost of Service per Activity is compared to the Department's "Current Fee", some fees will appear to under recover their costs, some will come close to 1 00% recovery, and some will appear to collect more than the cost of providing services. This is a typical outcome of any Fee Study. According to the City's revenue reports for Fiscal Year 2014-15, approximately $170,000 were collected in fees for Fire Prevention services. As discussed in the Cost of Service Analysis section, above, the total estimated cost of providing fee related services for the Division is $72'7 ,000. The City is currently recovering approximately 23% of the cost of providing these services. Fee Establishment The Fire Prevention Division has not reconsidered the design of its fee structure (in terms of number of categories, fee names, additions and deletions of fees) for many years. As such, much of the efforts of this Study focused on bringing the fee structure up to current best practices seen in other agencies, based on the combined professional experience of the current Fire Marshal and NBS' consulting team. The following provides a summary of changes and observations regarding each major section of the fee table shown in Attachment A: Fee Study of Fire Prevention Services -City of Carlsbad Prepared by NBS 9 Item #10 September 13, 2016 Page 17 of 41 I. Fire Extinguishing and Alarm Systems: The City permits new or retrofitted sprinkler and alarm systems, as well as other types of specialized extinguishing systems. This Study established separate fee categories for the Processing, Plan Review, and Inspection portions of the permitting services provided by the Division. In addition, the Study focused on clarifying fee names and re-defining appropriate tiers (breakpoints) for fee categories. The Fire Marshal should be able to utilize the revised structure in deciding how to best charge for insourced versus outsourced plan reviews, as well as have a better tracking of fees aligned with specific services provided. The City's customers should experience greater transparency in what their fee amount for specific project requests will be. II. Development Applications, Plan Review, and Inspection: The City's Fire Prevention Division reviews and provides comments on many types of applications submitted to the Planning and Engineering Divisions. The Fire Prevention Division also supports the Building Division by reviewing plans and inspecting most types of new non-residential projects, residential vegetation fuel modification requests, and any hazardous materials storage, high piled storage, or above and underground tank permits. NBS reviewed the City's prior fee analysis and determined that some costs for Fire Prevention activities related to the review of Planning, Engineering, and Building projects were included in the establishment of those Divisions' fees for service. However, the City collects each fee as one fee, and does not track Fire Prevention's component of that fee calculation to a separate revenue account. For purposes of analysis, Attachment A makes an attempt within the "Current Fee" column, with available data from the last fee study, to estimate the portion of the City's current fee amounts that could be attributed to Fire's costs of providing services. Sufficient data was available to provide approximate current fee information for Planning and Engineering application review, but not for Building plan review or inspection services. NBS' recommendation for fees associated with Fire Prevention's review of Planning, Engineering, or Building projects is to establish a separate fee rather than combine the costs of Fire Prevention review into the total fee for service. The primary reason for this is the City should be able to charge the Fire Prevention review fee when it applies, and not charge it when a review is not needed or not conducted. Ill. Annual Inspection and Fire Code Permits: The City is required to perform routine, State-mandated inspections on many types of building within City limits such as residential and commercial care facilities, hotels and motels, apartments, etc. The City also charges both annual and one-time fire prevention permit fees for activities regulated or permitted per the California Fire Code and/or Carlsbad Municipal Code. The Fire Marshal indicated the City would like to expand its compliance with current mandates, as well as look into expanding the program as a whole to achieve greater public safety objectives. This Study assisted the City in adjusting fee amounts for current services in this area, as well as creating a comprehensive system of fees should the City pursue an expanded annual inspection and permitting program. Via this report, NBS provides the total estimated cost of service information and the framework for considering fees, while those closest to the fee-paying population, the Fire Prevention Division, considered appropriate cost recovery levels at or below that total cost calculation. Section 1 of this report may be referenced for cost recovery evaluation guidelines. Predicting the amount to which any adopted fee increases will affect City revenues is difficult to quantify, and was not possible to estimate at this time with the data available from City resources. Fee Study of Fire Prevention Services -City of Carlsbad Prepared by NBS 10 Item #10 September 13, 2016 Page 18 of 41 Section 4 -Conclusion Based on the Cost of Service Analysis, Cost Recovery Evaluation, and Fee Establishment phases of analysis in this study, the proposed schedule of fees formatted for implementation has been prepared and included in the City's accompanying staff report As discussed throughout this report, the proposed fee schedule includes fee increases intended to greatly fmprove the City's recovery of costs incurred to provide individual services, as well as to adjust fees downward where fees charge exceed the average costs incurred. For the near-term, the City should not count on increased revenues to meet any specific expenditure plan. Experience with these fee increases should be gained first before revenue projections are revised. However, unless there is some significant, long-term change in activity levels at the Cfty, proposed fee amendments should -over time-enhance the City's revenue capabilities, providing it the ability to stretch other resources further for the benefit of the public at large. The City should consider adjusting these user fees and regulatory fees on an annual basis to keep pace at least with cost inflation. For all fees and charges, the City could use either a Consumer Price Index adjustment or a percentage of Labor Cost increase, and that practice would be well applied to the new fee schedule. Conducting a comprehensive user fee study is not an annual requirement; it becomes worthwhile only over time as significant shifts in organization, local practices, legislative values, or le_gal requirements change. In NBS' experience, a comprehensive analysis such as this should be performed every three to five years. It should be noted that when an automatic adjustment is applied annually, the City is free to use its discretion in applying the adjustment; not all fees need to be adjusted, especially when there are good policy reasons for an alternate course. The full cost of service is the City's only limit in setting its fees. As a final note in this study, it is worth acknowledging the path that fees in general have taken in California. The public demands ever more precise and equitable accounting of the basis for governmental fees and a greater say in when and how they are imposed. It is inevitable in the not too distant future that user fees and regulatory fees will demand an even greater level of analysis and supporting data to meet the public's evolving expectations. Technology systems will play an increased and significant role in an agency's ability to accomplish this. Continuous improvement and refinement of time tracking abilities will greatly enhance the City's ability to set fees for service and Identify unfunded activities in years to come. In preparing this report and the opinions and recommendations included herein, NBS has relied on a number of principal assumptions and considerations with regard to financial matters, conditions and events that may occur in the future. This information and assumptions, including the City's budgets, time estimate data, and workload information from City staff, were provided by sources we believe to be reliable; however. NBS has not independently verified such information and assumptions. While we believe NBS' use of such information and assumptions is reasonable for the purpose of this report, some assumptions will invariably not materialize as stated herein and may vary significantly due to unanticipated events and circumstances. Therefore, the actual results can be expected to vary from those projected to the extent that actual future conditions differ from those assumed by us or provided to us by others. Fee Study of Fire Prevention Services -City of Carlsbad Prepared by NBS 11 Item #10 September 13, 2016 Page 19 of 41 City of Carlsbad Fire Prevention • User Fee Study FY 15116 ATTACHMENT A Cost of Service Estimate for Fee Related Services and Activities NBS -local Government Solutlo11s Web: www.nbsgov.com ToiH<ee:800.676.7516 Are COS, Page 1 of 6 Item #10 September 13, 2016 Page 20 of 41 City of Carlsbad Fire Prevention • User Fee Study FY 15/16 ATTACHMENT A, Cost of Service Estimate for·Fee Related Services and Activities 0% 0% $ $ 132 $ $ 132 $ 150 114% 132 $ $ 132 $ 617 469% 132 $ $ 132 $ 735 558% NBS ·local Government Solutions Web: www.nbsgov.com Toii-Free;B00,676J516 Fire COS, Page 2 of 6 Item #10 September 13, 2016 Page 21 of 41 City of Carlsbad Fire Prevention· User Fee Study FY 15/16 ATIACHMENTA Cost of Service Estimate for Fee Related Services and Activities NBS-local Government Solutions Web: www.nbsgov.com Toii-Free:800.676.7516 Fire COS, Page 3 of 6 Item #10 September 13, 2016 Page 22 of 41 City of Carlsbad Fire Prevention • User Fee Study FY 15/16 ATTACHMENT A Cost of Service Estimate for Fee Related Services and Activities NBS .. local Government Solutions Web: www.nbsgov.com Toii-Free:800.676.7516 Fire COS, Page 4 of 6 Item #10 September 13, 2016 Page 23 of 41 City of Carlsbad Fire Prevention· User Fee Study FY 15/16 Cost of Service Estimate for Fee Related Services and Activities the City Manager or the City Manager's determine the appropriate fee based on the les;tab,listled hOurly rates for this division. Additionally, the City wfll m~>os·unmJu" to the applicant any discrete costs incurred from service providers if required to process the NBS-Local Government Solutions Web: www.nbsgov.com Toii-Free:800.676.7S16 ATTACHMENT A ·• ;_--~. ; I "*"----=-----a Fire COS, P~ge 5 of 6 Item #10 September 13, 2016 Page 24 of 41 City of Carlsbad Fire Prevention -User Fee Study FY 15/16 Cost of Service Estimate for Fee Related Services and Activities Fee Fee Description No. (Notes) All annual Inspection fees shall Include time for ihe lnltlallnspecUon and 1 (1) reinspection. All subsequent tft\speetions shall be charged an addiliooal rate per inspection. (2] (3] (4] 151 [6] (7] (8) [9) For services requested of City staff which have no fee listed in this fee schedule, the City Manager or the City Manager's designee shalf determine the appropriate fee based on the established hourly rates for this division. Additionally. the City will pass~ through to the applicant any disctete costs incurred from the use of external se<vice providers If required to process the specific request Additional Reinspection fees shall apply for phased inspection projeclS at the dlscrellon of the Are Marshall Minimum deposit of S 1500 required for review of Alternate Methods and Materials Tier 1 -Candles-Open Aame; Cryogens; Dry C1ean1ng; liquefied Pelroleum Gas (LPG); Motor Vehicle Fuel Dispensing: lndustlial Ovens; Hot Works: Welding Tier2 -Aerosol; Aviation Faciity; Waste Handling; CamivalfFair, Combustible Materials Storage; Compressed Gas; Oust Producing Operations; Flammable Liquids -Storage; Combustible ljquids -Storage; F&ammabse/Combustible Liquids-Tanks; Flamrnable/Combuslibta liquids -AST/UST Removal; Fruit Rfpeningi Hazardous Materials; Magnesium Work: Repair Garage; Tire Storage; Explos!ves·Model Rockets Tier 3-Aircraft Refueling; Explosives -Blasting & Fireworl<s; High Pi.led Combusti>le Storage (HPS); Lumber Yards & WoodWO<I<ing Plants; Refrigeration Equipment; Spraying or Oipj)lng Operations; Package Pemlts-AJI permits associated in the following activities are included in the lier priced above: Dry Cleaning; Motor Vehtcle Fuel Dispensing; Repair Garage; Welding Addhlonal fees for Standby of fire personnel and equipment during event will apply. NilS -local Government Solutions Web: www.nbsgov.com Tolf.Free:800.676.7516 "' Q) 0 z ATTACHMENT A Processing Plan Review Inspection Total Cost of Cost Of Cost of Cost of Existing Cost Service Per Current Fee Service Per Service Per Service Per Recovery % Activity Activity Activity Activity Fire COS, Page 6 of 6 Item #10 September 13, 2016 Page 25 of 41 helping communltlea fund tomorrow User Fee Study of Fire Prevention Services Prepartd for the City of Carlsbad FINAL: June 20, 2016 OFFICE LOCATIONS: Sln--~OIIot 870 -· s.-. S...la 1223 Son Frtndtco, CA 941 02 tn.ft -Rogimll Ol!b 1~ Lai<ISoulevard, S<ila 202 Do.II.CA95616 /Mno-Rogicnll OJib 18012 Cowan Stteec, Suite 290 lrvlne,CA92614 Tom«:ttl•-Cctpct~t~o Hndqullrlers 32606 Temec:<Aa Plll<way, SUieiOO T emec:<Aa. CA 92592 (P} 800.87&.7518 nbsgov.com Item #10 September 13, 2016 Page 26 of 41 City of Carlsbad Fire Prevention · User Fee Study FY 15116 Staffing Detail Input cells 1n blue font: formula based cells in black font Fire Prevention SpecialiSt II Fire Marshal Deputy Fire Marshall Fire Prevention Specialist II Weed Abatement ( PT) Are Prevention Inspector (PT) Adjustments[2): Secretary Notes (1) Stefflng info sourc&d 4-om client proVided oxcot file "FY 14 Fh Ptt$0~r {1) PB111-Time Stefflng info $0utced from client provided excel file "PBftTime Employee Worl<sheet (FY 17}'"' {1} Permit Tech Staffing info 80Urced from dient proirlded PDF life "Permit Tech* {2} Sw-et.-y bud~ted 1ft StJPPOtt StrVtc:.s unit suppotts Fire PreventiOtt 101m Porm/1 TecMicien Po$Jik>n budgeted In FY 20HV1 7 budget Inspector posfl.ions life a plttceht>lfHt lor worl<lottd on«ysis {3} Sourood from Cllrl$l>.J Wob.slte MOU PDF "2015 Btmefits Summary CFA~ $1.tJtl.ng avg 89hrs sick time, 12 holidays. average of 15 vacation day$ NBS • Local Gov«nment SOlutions Wfb: www.nb.sCOV'.tom TOII•Fttt:800.676.7Sl6 Fire Staff, Page 2 of 16 Item #10 September 13, 2016 Page 27 of 41 City of Carlsbad Fire Prevention-User Fee Study FY 15/16 Fully Burdened Hourly Rate lnpul cells 1n blue font: formula based cells In black font LABOR EXPENDITURES AND STATISTICS Benefits Part-Time Salaries Overtime -Regular Adjustment-Secretary Adjustment -Permit Technician Adjustment -Inspector Subtotal "Productive• Labor Hours NBS · local Government Solutions Wtb: www.nbsgov.com Toii·Fr••:800.676.7516 22 780 86,523 30,619.50 95,116 33,660.55 $ 621,554 $ 158,859 $ 780,412 $ 276,180 12,680 12,680 4,116 Cost Allocation to Each Function I Activity 8,580.76 4.144.87 3,033.65 3,033.65 37,110.34 9,432.98 4,556.53 3,334.95 3,334.95 40,796.05 $ 77,396 $ 37,386 $ 27,363 27,363 $ 334,725 1,357 978 356 356 5.517 fire FSHR,Poge 3 of 16 Item #10 September 13, 2016 Page 28 of 41 City of Carts bad Fire Prevention· User Fee Study FY 15116 Fully Burdened Hourly Rate lopul cells '" btue font; formula based cells in black font RECURRING NON-LABOR EXPENDITURES 7215 ·SOFTWARE MAINT 7430 ·DEVELOPMENT PLANCHECK SERVICES 7550 ·MISCELLANEOUS OUTSIDE SERVICES 771 1 • DUES AND SUBSCRIPTIONS 7712 • BOOKS AND PUBLICATIONS 7715 ·PRINTING 7720 ·POSTAGE 7885 ·SPEC INVESTIGATIVE SUPPLIES 7899 • MISC SUPP 8130 · TRAININGITRAINING RELATED TRVL 8830 • GENERAL UAB 200 91 .518 2,032 2,032 719 2,000 2,000 708 2,300 2,300 814 654 654 231 400 400 142 500 500 177 3,000 3,000 1,062 3,040 3,040 1,076 Cost Allocation to Each Function I Activity 202 97 71 71 812 198 96 70 70 858 22l! 110 81 81 986 65 31 23 23 281 40 19 14 14 172 50 24 18 18 214 298 144 105 105 1.287 301 146 107 107 1,304 ~~~~~......:Jmllll...m~~...um -.... -. . - I •. TOTAL~~CU~RRING NON-LABOR EXPENDITURES _S 105.844 S (91,518) $' 1'!,326 S 5,070 S 1,421 S 686 S 502 S 502 S 6.145 ---,._ .,._ • ---_.. • • --I --.. NBS ~ Local Government Solutions Wtb: www.nbsaov.com Toii•Free:800.676.7516 Fire F8HR,Page4 of 16 Item #10 September 13, 2016 Page 29 of 41 City of Carlsbad Fire Prevention· User Fee Study FY 15116 Fully Burdened Hourly Rate Input cehs In blue font: formula based cells in black font CITYWIDE OVERHEAD COSTS SUMMARY OF LABOR, NON-LABOR, & OVERHEAD COSTS NBS 4 Local Government Solutions Web: www.nbsgov.com To!I-Free:800.676.7516 Cost Allocation to Eac:h Function I Activity Cost Allocation to Each Function I Activity Fire FBHR,Page 5 of 16 Item #10 September 13, 2016 Page 30 of 41 City of Carlsbad Fire Prevention -User Fee Study FY 15116 Fully Burdened Hourly Rate Input cells 1n blue font; formula based cells in black toni ALLOCATION OF COMMON ACTIVITIES COSTS I I 1Cost Element Established General Public Weed Cost Info Abatement Public Education Arson Invest. Incident Response Direct Plan Checkl Field Services 1~1'~~-~--11!1~~1i!li~·~~ll!!l_.~-~~~. !!!!!!!!!!~.~.~-:.._1· _1[111111•11,1 ~~I.,.E'J!~·~.[!.I[--~-~ .. ~~~E]··~:~.~.~-~.1 .. ~·lllt!l,.._ii_~JI~··FIII_f.i_~o.li_il_~-<.~.'ll_•[l:::--1,•.~~-~~: il~il-~.~~. ~!'-~ ~. ~~-~ _ ~-:osi!,P ~---"" 5,o.~G~~ ~ ~:' ~-~4,4_7~ · $: 1~.~1~:· { S:_9~;~ ~ ~_1t!}~~·JJ:~ FULLY-BURDENED HOURLY BILLING RATE FOR RECOVERY IN FEES I Cost Element 1 1 Ab Ed lnc1dent Check/ F1efd Total I General Pubhc I Weed I Public ! Arson Invest 'I D"ect Plan I I n o atement ucatlon Response Services Labor Recurring Non-Labor Citywide Overhead Division Administration Reference: Direct Hours Only Notu Salary and expense$ ao~ced from cienl provld&d excel file (1) 'fY 16 Fire Dept Budget" 121 Outsoureed Plan Review b e pass through cost $ 77.396 1,421 13,686 50,666 75% (3] Sourced tom City Finance Department's FY 14-15 Cap SUmmary dowment NBS · lor.~l Gove(nment Solution$ Web: www.nbsgov.com Toll·f(ee:800.676.7St6 $ 37,386 686 6,611 24,474 0% $ 27,363 $ 27,363 $ 334,725 $ 504,233 502 502 6,145 9.256 4,839 4,839 59,191 89,166 17,913 17,913 219,123 330,088 :. 0% 0% 100% fire FBHR,Page 6 of 16 Item #10 September 13, 2016 Page 31 of 41 City of Carts~d Fire Prevention-User FH Study FY 1!5116 ATTATCHMENT A Cost of Service Estimate for Fae Reloted Services and Activities NBS • t.oal Gowmmtttt Solutlo~u Web: www.ntu;cov.com ToM..fru:I00.6'76.75L6 Fire COS, P~ge 7 ot 16 Item #10 September 13, 2016 Page 32 of 41 City of C1tlsbad Fire PrevenUon ·User F" Study FY 15116 ATTATCHMENT A Cost of Service EsUmatelor Fee Related Services and Ac1lllltles NBS· LOeal Go....ernment Solutkms Wtb.: www.I'\IHp.c.orn ToU·Fftt:I00.676..7S16 Rr• cos. Pace 8 of 16 Item #10 September 13, 2016 Page 33 of 41 City of Cariabad Fire Prevention· User Fee Study FY 15/16 ATTATCHMENT A Cost of Service Estimate for Fee Related Services and Activities Nes ·Loe~l Government Solutfor'IS Web: www.nbJJO'ti.COm Tolt.free:800.676.7S16 Item #10 September 13, 2016 Page 34 of 41 City of Carlsbad Fire Prevention · User Fee Study FY 15116 ATTATCHMENT A Cost of Service Estimate for F .. Related Services and Activities NBS -loc.al Governmtflt Sotvdons Web: www,nbs&CN.COm Toti·Fre-e:I00.676.7S1G Fire COS, Paat 10 of 16 Item #10 September 13, 2016 Page 35 of 41 City ot Carlsbad Fire Prevention· User FH Study FY 15116 ATTATCHMENT A Cost of Service Estimate for Fee Rotated Services and Activities NBS· lotaJ Go'ltrn~rot ~oMion• W~b: www.nbi&OV.<om Tou.r,e.:&00.616.7516 Fife C~ P.1!tt 11 of lEi Item #10 September 13, 2016 Page 36 of 41 City of Carlsbad Fire Prevention ·User FH Study FY 1SI16 ATTATCHMENT A Cost of Service Estimate for Fee Related Services and Activities N8S • Local Govtrtlt'l'ltnC Sotutlofl'c Web; www.nbscov.com TOU•ffet:100,676.7516 Arl! cos, Pace 1l of 16 Item #10 September 13, 2016 Page 37 of 41 City of Carlabad Fire Prevention· User Fee Study FY 15116 ATTATCHMENT A Cost of Service Estimate for Fee Related Services and Activities NBS ·l.o~ Government Sofutrons Web: www nbs&ov.com Toll-free:800.676.7516 Jtre cos,. P~c• 13 af 16 Item #10 September 13, 2016 Page 38 of 41 City of Carlsbad Fire Prevention· User FH Study FY 15116 Cost of Service Estimate IOf Fee Relalld Servlca and Activities 1118 City Man~~ger or the Qty Managefs determine the appropriate lee based on the ies'tabllsll<ad hourly rates I« this division. Addttlonalty, the City will I021SS··throut>h to the applicant any disetete costs Incurred from service provide<$ if required to process 1118 NBS •loti I Govtmment Sokitloru: Wtb: www.f"'Maov.Gom roll·free.800.616 1516 ATTATCHMENT A Flit cos. Paat 14 of 16 Item #10 September 13, 2016 Page 39 of 41 City of Carlsbad Fire Prevention· User F" Study FY 15/16 ATTATCHMENT A Cost of Service &timate for Fee Related Services and Activities ,.. Processmg Plan Rcv1ew ln!.pecflon Tot~l Cost ot Fee ll Cost Of Cost of Cost of Ex1stmg Cost Fee Oescrtphnn 3 S P 5 P S p Service Per Current Fcc R • No. _: erv1ce cr crvtcc cr crvlco or AcHvH ecovery t~ Act•v•ty Activity Acttvlty 'I [Notes] AU t~nnu~l inapeoc:llon '"' the!llftOiudo tlmo k>f tholnlftllnspoolion Wld 1 (1) relnlptletkln. AU aubtequent reinapoctlone at'lll be charged ao addftional rate pM fnfptctlon 121 [3) (41 (51 (81 [71 For MrYio.• roquNt..d of Cky llaff whlel\ hlvt> no foe lltl.ed In folia ,.,. seh6dul•~ lhe Cfty Ml;nlliJef Of lht C1cy Ml!"'l~r·s 0t1!gntt Nil dttoftnne lhe -appropriate fee baa.ct on the oalabllaMd hourly rltM fof lhra dlvlaion Additionally, lho City will pta•U'Irowgh 10 the apC>IIctntony clitcreto co.tta lnct.wrtd &-om lhe use of OJ~;t.nl .. a.,-.,tce pro\lldtra It r~od to pro.ceu 1M toed~ requea-L Mdi~l R•NP4Ciion fMa lhlil appty fct pNMd inq,ection ~cfecta at IN dl.tel'tltiOf'l of lhe Ate Mltlhd ~~I of S1500requtM bnt'lf.wofAit.-n.a .. Melhod:l and~ T10r r-c..,..., -OponFWN. ~ OtyCio-g, Uqu•,..,-m Gu(U'G~ MolorV-Fwla.__~o-..·Hoc-W-.g T1ot 2--Avia ..... F-We ... H.,..a..g: c:.mMIOII'oO: Com>u- MoaerilloSio<-~a..;eu..""""'"""o.---Llq .... -&orog •• ~.._.-St .. _.F_ IJQUICis-Tanh. F111'1'Y'M~~ Uqulctt-A$TIUST AM~C~Wt FNIC Rl-""o.-oMolO<Io!a,-Wori<;-Gor-.lh5aoge. ~-'Rock•tl Ill Tlw 3 _..,..,.. 1<11~ E>cPosNes--101 & Fir-., H~ Pilod Combu~ SkMa.ge (HPS): l umbw Y.Ga & W~ A.n-.; R~lior. equ.,....,t ~·~no., llii>Pne O!>o.....,., (OJ f"ack.;a Pemit1 -AI ptt.Wit attod•ttd In ~~ followtng adtYftles .,. inducl•d m 11'!. Titor pliortd ~: Ory C .. l nli'IQ: Mol« Vehldt Fuel Oiapenstno: Repair Otrege; Welding Add• 110M I IMt (Of Sllndby of II~ portonn-' and eq~ment durlno ever.t wilt •PJIIY NBS ·local GOVtN'Imtnt Solutions Wtb; www.nbsaov.com ToU·Frtt.800.676.7S16 ~re cos. Pa&t: 15 of 16 Item #10 September 13, 2016 Page 40 of 41 City of Cal1sbacl Fire Provontlon ·User Foe StU<Iy FY 15116 Estimated Inventory of AnnuallnspectJons and Fire Code Permit Requirements N8.$ LO<'af GO'ttmment Sofutfc>ru Web: www..nbs&ov.<om Toll•fr«:I00.676.7516 Annu.ttlnsp PrCCfiWn Info, P•se-16 of 16 Item #10 September 13, 2016 Page 41 of 41 AFFIDAVIT OF MAILING NOTICE OF PUBLIC HEARING ro: cmc~~ DATE OF PUBLIC HEARING: q l13z !1\.P -r::1 [::p~) I suBJEcT: v r-c -Te-&s LOCATioN: \2tD Co~ \j'l ~lW ()(Lv-e DATE NOTICES MAILED TO PROPERTY OWNERS:-~--~---- under the laws of tate of California that I am · g is true and correct. CITY CLERK'S OFFICE ~/' (Date) SENT TO FOR PUBLICATION VIA E-MAIL TO: D _Union Tribune _ ~ CoastNews PUBLICATION DATE: Union Tribune ____ ~-----,-------'----.-- Coast News __ q-L-f[-=k= __ g_q __ -+,/-'9+------ I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carlsbad in the City Clerk's Office e foregoing is true and co~. . Date: eo~~~ \ \f ------+,---+,~--------- Attachments: 1) Mailing Labels 2) Notice w/ attachments NOTICE OF PUBLIC HEARING CITY OF CARLSBAD CITY COUNCIL PROPOSED FEES FOR FIRE PREVENTION SERVICES The City of Carlsbad City Council will hold a public hearing on Tuesday, September 13, 2016 at 6:00 p.m. in the Council Chamber, 1200 Carlsbad Village Drive, Carlsbad, California, to discuss and adopt the proposed fee changes for fire prevention services. Interested parties are invited to attend this meeting and present their views and comments to the City Council. Copies ofthe proposed fee changes and supporting fee study are available for public inspection at the City Clerk's Office, 1200 Carlsbad Village Drive and the City of Carlsbad Faraday Center, 1635 Faraday Avenue. Written and telephone inquiries may be directed to Randy Metz (Randy.Metz@carlsbadca.gov), Fire Marshal, 1635 Faraday Avenue, Carlsbad, 760-602-4661. The Coast News Decreed A Legal Newspaper by the Superior Court of San Diego County. Mail all correspondence regarding public notice advertising to: The Coast News P.O. Box 232550 Encinitas, CA 92023 (760) 436-9737 Proof of Publication STATE OF CALIFORNIA, ss. COUNTY OF SAN DIEGO, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am principal clerk of the printer of The Coast News, a newspaper printed and published weekly and which newspaper has been adjudged a newspaper of general circulation for the cities of Carmel Valley, Del Mar, Solana Beach, Encinitas/Cardiff, Carlsbad, Oceanside, Vista, San Marcos, Escondido, the County of San Diego and the County Judicial District by the Superior Court of the State of California, County of San Diego (8/4/94, #677114, B2393, P396); and that the notice, of which the annexed is a printed copy, has been published in, each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: September 02, 09, 2016 I certify under penalty of perjury that the foregoing is true and correct. Executed at Encinitas, County of San Diego, State of California on this 9th of September 2016. ------------ Space above for County Clerk's Filing Stamp Q NOTICE OF PUBLIC HEARING CITY OF CARLSBAD CITY COUNCIL PROPOSED FEES FOR FIRE PREVENTION SERVICES The City of Carlsbad City Council will hold a publi~ hear- in on Tuesday, September 13, 2016 '!t 6:00 p.m. m the C;uncil Chamber, 1200 Carlsbad Village Dnve, Carlsbad, California, to discuss and adopt the proposed fee changes for fire prevention services. Interested parties are invited to attend this meeting and present their views and comments to the Clty CounCll. Copies of the pr<!posed fee ~hange~ and supp?rting fe; study are available for public ms~ectwn at the Clty Clerk~ Office, 1200 Carlsbad Village Dnve and the Clty of Carls bad Faraday Center, 1635 Faraday Avenue. Written and telephone inquiries may be directed to Ran- dy Metz (Randy.Metz@carlsbadca.gov), Fire Marshal, 1635 Faraday Avenue, Carlsbad, 760-602-4661. 09/02/16,09/09/16 CN 19117 Fire Chief Mike Davis Fire Marshal Randy Metz September 13, 2016 Fee Structure for Fire Prevention Historical •History of Carlsbad Fees •Why change now •First change in over 20 years Goals •Provide Transparency •Industry Standard Fee Structure •Support Council Goals Study Highlights •Contracted with NBS •True time over task cost for every Inspection or permit. •Established costs for Administrative Processing, Plan Review, and Inspection separately. •Established costs for services historically captured through collection processes in other city departments but no longer collected. Fire Prevention Development Administration Inspections Planning Recommend True Cost No Discount 60,000 Square Foot Office Building/Warehouse TI ITEM CURRENT PROPOSED Architectural $0 $658 Fire Sprinklers $701 $634 Permit $71 $108 Plan Check $346 $198 Inspection $284 $329 Fire Alarm $915 $601 Permit $68 $108 Plan Check $535 $230 Inspection $312 $263 High Piled Storage $326 $733 Permit $326 $108 Plan Check $0 $296 Inspection $0 $329 TOTAL $1,902 $2,626 DIFFERENCE +$724 = $.01 Per Square Foot Multi-Family Apartment Building <50 Units ITEM CURRENT PROPOSED Architectural $0 $1,152 Underground $913 $733 Permit $55 $108 Plan Check $624 $230 Inspection $234 $395 Fire Sprinklers $1,615 $832 Permit $71 $108 Plan Check $1,260 $362 Inspection $284 $362 Fire Alarm $915 $1,227 Permit $68 $108 Plan Check $535 $428 Inspection $312 $691 TOTAL $3,443 $3,944 DIFFERENCE + $501 =$10 Per Apartment Unit 5,000 Square Foot Dream Home ITEM CURRENT PROPOSED Fire Sprinklers $509 $360 Permit $71 $108 Plan Check $225 $132 Inspection $213 $121 TOTAL $509 $360 DIFFERENCE -$149 = $.03 Less Per Square Foot 30,000 Square Foot Church ITEM CURRENT PROPOSED Architectural $0 $790 Underground $913 $733 Permit $55 $108 Plan Check $624 $230 Inspection $234 $395 Fire Sprinklers $1,615 $832 Permit $71 $108 Plan Check $1,260 $362 Inspection $284 $362 Fire Alarm $915 $1,227 Permit $68 $108 Plan Check $535 $428 Inspection $312 $691 Hood & Duct $440 $404 Permit $71 $108 Plan Check $298 $132 Inspection $71 $165 TOTAL $3,883 $3,986 DIFFERENCE +$103 =$.003 PerSquare Foot Fire Prevention Development Maintenance Administration Inspections Planning Mandated Inspections Optional Business Inspection Operational Permits Inspections Recommend True Cost No Discount Recommend No Cost Staff Recommendations •City Council adopt new Fire Prevention Fee Schedule. •Adopt policy authorizing true cost fees for development service and special events and activities. •Adopt policy establishing fire code permits and maintenance inspections as service to public, not fee for service. Next Steps •September 13, 2016 –Hold public hearing and adopt new rates •November 13, 2016 –Effective date of new rates